Aon enhances climate tool with advanced flood data

Aon has teamed up with flood risk expert Fathom to enhance its climate risk monitor tool.

The tool helps clients assess physical climate risks, including floods, droughts and wildfires.

Fathom’s data will help enable the tool to model flash floods, river flooding, coastal flooding and sea level rise at a resolution of 10 square metres in the US, UK and Japan. This expands to 30 square metres for other regions globally.

The data also provides future flood projections under varying climate scenarios, helping insurers assess insurability and meet disclosure requirements.

Liz Henderson, global head of climate risk advisory at Aon, said: “The dynamics of the flood peril are particularly sensitive to climate change, which raises growing concerns around global insurability.

“Our collaboration with Fathom enhances the value climate risk monitor brings to clients, particularly in understanding and mitigating flood risks.”

Weather losses

The collaboration follows a year marked by significant weather-related losses, with over $125bn (£101.3bn) in insured damages globally, according to Aon.

Meanwhile, ABI data published in August 2024 showed UK insurers paid out £1.4bn in claims for property damage during Q2 2024. 

Flood Re’s interim chief executive, Stuart Logue, warned during Flood Action Week (14-20 October) that his firm was seeing an increase in severe weather and flooding across the country.

The UK government also reported that heavy rainfall in November 2024 triggered the first major flooding incident of the autumn, affecting nearly 1,000 properties.

Harry Vardigans,  head of insurance at Fathom, said: “This partnership empowers Aon’s clients to better assess and manage flood exposure, strengthening risk strategies in an era of climate volatility.”